The Why

Believe or not, there are benefits to creditors in having a properly functioning bankruptcy system. One of the benefits is it that provides an orderly and "fair" distribution of a debtor's assets. Most bankruptcy cases are "no asset," which means that there are no assets in excess of allowable exemptions. Where the case is "no asset," the creditors get nothing. Where there are assets, however, bankruptcy ensures that all creditors share pro rata, in accordance with their respective legal priorities.

There needs, of course, to be an efficient way for the parties to a bankruptcy case (creditors, the Office of the United States Trustee, and panel trustees) to quickly determine whether (a) the debtor is truly in need of the protection that bankruptcy provides, and (b) the case is an asset or no asset case, and, if it's an asset case, what the assets are. That's where the paperwork comes in.

While there are tools available to trustees and creditors to challenge the accuracy of the information in the paperwork (and as discussed elsewhere in this site, individual filers are subject to random audits), the rule in bankruptcy is that trustees and creditors shouldn't have to "dig" for information - it is, instead, the debtor's obligation to get it right the first time. If you think about it, it makes sense. The entire system breaks down if the debtor's paperwork cannot be relied upon. As we state elsewhere in this website, to a large extent, you appear, in a bankruptcy case, through your paperwork.

The What

The paperwork you will file will include the following parts:

• The Petition. Although the entire package of paper is often referred to as the petition, technically the "petition" is the first part of the forms in which you ask for an "order for relief." Among other things, you provide, in the "petition" part of the forms: your formal name, trade names, any names you may have used in the past, your address, and the Chapter you are filing under. You also provide certain other information and certifications (including certification of your completion of the prefiling credit counseling briefing).
  
  
• Schedule A is information about any real estate you own.
  
  
• Schedule B is information about all of your non-real estate assets (called "personal property").
  
  
• Schedule C is the list of exemptions which you are claiming.
  
  
• Schedules D, E and F are detailed (by names, account numbers, addresses, dates debt was incurred, and purposes for which debt was incurred) lists of, respectively, your secured, priority (including tax creditors and domestic obligations), and general unsecured creditors.
  
  
• Schedule G is a list of your executory contracts and unexpired leases.
  
  
• Schedule H is a list of all persons and entities which are liable with you on any of your debts.
  
  
• Schedules I and J are your budget (i.e, detailed information about your current income and expenses). See Budget Worksheets for the general form of these schedules.
  
  
• The Statement of Financial Affairs is a series of questions regarding (i) your sources and amounts of income over the last couple of years, (ii) your payments to creditors (for the year before you filed for bankruptcy for insiders and 90 days before you filed for non-insiders), (iii) lawsuits in which you were a party, (iv) repossessions, foreclosures and returns, (v) gifts and other transfers and losses, (vi) closed financial accounts, (vi) prior addresses, and (vii) any business with which you were associated during the 6 years before the filing.
  
  
• The Statement of Intention is a document which you file (in Chapter 7 cases) in which you state your intentions (surrender, redemption or reaffirmation) with respect to secured and leased assets.
  
  
• Form 22 is the document which you complete and file which shows how you come out on the means test. There are three forms, one for Chapter 7, one for Chapter 13, and one for Chapter 11.